What Are Research & Development Tax Credits
Research and Development (R&D) tax credits are a government incentive, operated by the HMRC, designed to reward UK companies for investing in innovation. Research & Development tax credits are a valuable source of income for many companies that wish to develop their business. R&D tax credits can also be a used as an investment into further research and development for your company.
According to HMRC, “Research and development takes place when a project seeks to achieve an advance in science or technology through the resolution of scientific or technological uncertainty.”
Companies that invest money into developing new products, services and processes or enhancing existing ones, are eligible for benefits such as a cash payment, reduction of corporation tax or increase in taxable losses.
Would you like to know if your business qualifies?
Find out if you qualify for R&D tax credits with the eligibility checker.
Who can claim Research & Development
Companies that spend money developing new products, processes, and services or enhancing existing ones, are eligible for Research & Development tax relief. If you’re spending money on business innovation, you can make a Research & Development tax credit claim through Shencoh.
Even if the development project is unsuccessful or shelved following the period of Research & Development, you can still claim on time you spent working on these projects, so give it a go and claim back what you have lost.
If you are still unsure if your business is eligible to claim Research & Development tax credits, contact us today, for a no-obligation consultation with one of our knowledgeable and friendly advisers. Or Use our quick R&D eligibility checker.
What is the process to claim R&D tax credits?
Once it’s clear you are eligible to make an Research & Development tax
credit claim through Shencoh, we will do all the hard work for you, by preparing all your research and development tax claim
information for HMRC. We will work to get you your maximum claim possible
from HMRC using our unique method and process, which is flexible
for every client we work with.
Using our unique method, Our Research & Development tax specialists
will claim for your two most recently-completed financial years. For example,
if your financial year end is the 31st December 2020, you can claim back on
the Research & Development for the years ending 31st December 2018
and 31st December 2019.
How are R&D tax credits calculated?
Research & Development tax credits are calculated based on your businesses’ qualifying research and development expenditure. Qualifying expenditure is identified and enhanced through the relevant rate to produce your enhanced expenditure. This will give your company a cash credit if you were loss-making, a corporation tax reduction if you were profitable, or an amount based on a combination of the two.
Research and development tax credits benefit companies exponentially. The SME scheme has a rate of R&D expenditure tax relief of 230%, with the large company scheme at a rate of 130%. Through these schemes, you can improve your company’s financial strength, save money on your tax bill or reinvest into innovative projects in the future, for an even larger tax claim next year.
Do you want to see if you are eligible for an average claim of £54,000? Then speak to one of our R&D specialists in Shencoh team.
For a free, no-obligation consultation.